01 Nov 2016 16:40pm
WINDHOEK, 01 NOV (NAMPA) Trustco Group Holdings Limited and European Investment Bank (EIB) on Tuesday signed a credit facility agreement to finance small business and entrepreneurs in Namibia.
Speaking at the signing ceremony here, EIBs vice-president Pim van Ballekom said the Euro 7.5 million (N.dollars 111 million) contract will be valid for the next six years.
EIB is a European long-term lending institution of the European Union owned by its member states.
The EIB has a strong track record in supporting crucial investment programmes across Africa and around the world, he said.
Ballekom stressed that the Bank is proud to support Trustco Group Holdings in continuing to provide loans to a crucial segment of the economy that has traditionally struggled with getting access to finance.
He said the Bank has been giving credit facilities to SMEs and micro businesses as a way of building financial inclusive societies.
Van Ballekom said the provision of the credit facility to Trustco does not involve any interest rates.
As the EIB typically does not finance more than 50 per cent of any project, Trustco Group Holdings Limited will match this investment with other term funding and future injections of capital by the Group, he said.
The financial facility is expected to help between 500 and 1 000 SME businesses and individual local entrepreneurs throughout Namibia.
Speaking at the same occasion, Trustco Group Holding Limiteds Managing Director Quinton van Rooyen said the loan facility was meant for business people to benefit from and repay back the loan.
We thank the EIB for its generous support to enable SMEs to gain access to loans in order to grow their business, he said.
Van Rooyen said Trustco remains committed to a vision of creating wealth for shareholders, customers and employees while impacting positively on society and the planet.
He stressed that this facility will help Trustco to contribute meaningfully to aspiring citizens through the provision of loans.
By providing the much needed loans that traditionally have been difficult to obtain, the Group will fully demonstrate its commitment to business and entrepreneurs, Van Rooyen said.